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Stellantis-Amazon, or how to go from car manufacturer to “tech company”

Stellantis-Amazon, or how to switch from car manufacturer to

Operation seduction for Carlos Tavares at the Consumer Electronic Show (THOSE) from Las Vegas.

In a sweater-shirt, an easy smile, the CEO of the Franco-Italian-American group Stellantis, an industrial vessel made up of some 14 brands resulting from the merger between PSA and Fiat-Chrysler, showed a much more pleasant face than usual during the two communications operations carried out on Wednesday afternoon by videoconference.

The first with analysts from Morgan Stanley, and the second at the opening of CES. We will also have noted, rather unusual, that each of the questions put to him, by analysts and then by journalists, were qualified – by him – at least as ” interesting “, Even for some of” excellent Which is rare enough to be reported!

Stellantis-Amazon, or how to switch from car manufacturer to

It must be said that Stellantis had formalized a large alliance with the giant Amazon a few hours earlier, which will in particular allow the deployment of connected services in the group’s cars from 2024.

« Stellantis will work with Amazon to deploy Amazon’s technology and software expertise within its organization, including vehicle development, creation of on-board connected experiences, and training of the next generation of automotive software engineers. », Specifies the press release formalizing this partnership.

In return, Amazon notably commits to equipping itself with thousands of Ram ProMaster BEV electric vans, which will enable it to improve the carbon footprint of its fleet of delivery vehicles.

The Ram ProMaster is the American counterpart to our Fiat Ducato and Peugeot Expert.
The Ram ProMaster is the American counterpart to our Fiat Ducato and Peugeot Expert.

A deal ” win-win “, To use the words used by Carlos Tavares:” thanks to artificial intelligence and cloud computing, we will improve the overall experience of our customers and transform the vehicle into a customizable living space, both for passengers and for the driver. » « Together, we’ll lay the groundwork to transform Stellantis from a traditional automaker to a global leader in software-driven development and engineering. », Adds the CEO of Amazon Andy Jassy.

We do not know the financial amount of these agreements, which complete the “software” strategy of Stellantis, already linked elsewhere to FoxConn (the main assembler of Applez) and Waymo, and even BMW on autonomous driving.

From manufacturer to “tech company”

In addition, they complete the transformation of this traditional manufacturer into a “tech company”, the new holy grail for a sector in full upheaval. As Carlos Tavares clarified during his discussions with Morgan Stanley, it is about a review that concerns both technologies and ways of approaching markets and rethinking the relationship with customers.

« The greatest risk would be not to move “, Summarized the industrialist, who is also pleased that his group receives” tons of applications » : « we are not worried about the access of talents to the Stellantis group », He commented. ” Many talents from tech are joining us, aware of the fact that we are seeking to evolve in order to achieve ever cleaner and safer mobility. »

Without a wooden tongue, however, the industrialist warned of the difficulties facing the sector. On the car side, we have to deal with a worrying increase due to the weight of the batteries: ” in the 80s, a compact car weighed around 800 kilograms. Today it is double. This poses the key question of access to raw materials, and this is fundamental from a purely environmental point of view. He explained during his video chat with Morgan Stanley.

And Carlos Tavares admits to being concerned about customer relations: “ the trend is to have a better understanding of what consumers expect, and to take better care of the customer journey. Studies show that there are many improvements to be made in the purchasing process, and this concerns both traditional manufacturers as well as newcomers in the sector. The quality of service must be improved, and distribution costs must also be reduced, in order to compensate for the additional costs associated with electrification.. And there the smile was gone.

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